09/12/2022
Recently, I helped two families to sell off their Sengkang EC homes. Both families have made near $600,000 and $700,000 in gross profit from the sales respectively in just 5 years of ownership. One of them remained the highest in annualised return in the condominium, which is at 11.5%!
The sales allowed one of them to go on and purchase a preferred lux project in District 09, while the other family was able to fulfil their desire to own two properties.
How is this possible? It is simple.
1. The Power of Singaporean Citizenship
Our government knows the power of our property market, and they make sure that Singaporeans will have first dibs into it via BTO and EC. By having eligibility conditions in place, they prevent foreigners from buying them. This exclusivity allow Singaporeans to acquire them first.
2. No ABSD
Not many people are aware of this - where current HDB owners are able to buy the EC without selling their current HDB, and there is no ABSD charged. You heard me right. With sufficient funds, you can do so and wait till your EC keys are ready before selling your HDB. With careful planning, there’s no need to even rent a place!
3. Lower Land Price = Lower Purchasing Price
EC is launched for sales at a subsidised price, just like BTOs. If you were to purchase a similar new unit that is from a private condominium, the price is at least 30% higher.
4. Comparable to Private Condominium
EC used to be seen as a 2nd class condominium in the past and not as highly favoured. This is far from the truth as many of the current new ECs are built with high standards with family friendly facilities, comparable to new private condominiums! In fact, as a Government Land Sales under the purview of HDB, EC needs to fulfill criteria set out which ensures that the condominium project is one that is well developed with full facilities.
With these 4 simple factors, once EC has reached its minimum occupation period (MOP) of 5 years and available for sales, it is able to command a price that is close to private condominium resale. And since it is purchased at a subsidised price, the gross profit margin is much larger.
The choice of purchasing an EC have helped Singaporeans to leverage on the property market and leapfrogged barriers to achieve their personal dreams. This is why many are scampering to purchase the newly launched ones. The problem? Limited supply. Whatever is launched are snapped up at lightning speed in the current market.
Current Available Stock
North Gaia in Yishun
Tenet in Tampines (2nd timers will be allowed to ballot again on 3rd January 2023)
New Launch in 2023
Bukit Batok West Avenue 8
And many other great options besides EC as well.
No life-changing event can happen by watching from the sideline. Take action to find out how about your eligibility, you could be the next family to witness your lives transformed.
